# In the matter of Kelvin Buildcon Pvt. Ltd. IA-4996-ND-2022 in IB-425-PB-2021

> NCLT judgment dated 2022-10-17. Citation: TCN-2022-NCLT-00724. The case involves an application (IA/4996/ND/2022) filed under Section 12A of the Insolvency…

- **Court:** NCLT
- **Order date:** 17 Oct 2022
- **Citation:** TCN-2022-NCLT-00724
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kelvin-buildcon-pvt-ltd-ia-4996-nd-2022-in-ib-425-pb-2021-74571e11

## Summary

### Background

The case involves an application (IA/4996/ND/2022) filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016. The Interim Resolution Professional (IRP) stated that the matter had been settled between the parties and Form FA was placed on record. The Corporate Insolvency Resolution Process (CIRP) was admitted by the Tribunal on 19.09.2022, but the constitution of the Committee of Creditors (CoC) was stayed by the NCLAT on 30.09.2022.

## Facts

M/s. Kaliber Associates Pvt. Ltd. filed an application against M/s. Kelvin Buildcon Pvt. Ltd. under Section 7 of the IBC, 2016, leading to the initiation of CIRP. The CIRP admission order was passed on 2022-09-19. However, the constitution of the CoC was stayed by the NCLAT on 2022-09-30. Subsequently, the parties reached a settlement, and Form FA was placed on record. An application (IA/4996/ND/2022) was filed under Section 12A of the IBC to terminate the CIRP based on this settlement. The IRP confirmed that his fees and CIRP costs had been paid. The key fact is the settlement between the parties, which led to the termination of the CIRP. The NCLAT stay on CoC formation facilitated the settlement process.

## Issues and analysis

### Issue 1: Whether the CIRP initiated against the Corporate Debtor should be terminated based on the …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The Tribunal considered the settlement between the parties, as evidenced by Form FA, and

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**Interpretation:** Section 12A is interpreted to allow for the termination of CIRP when a

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**Application:** Given the settlement and the NCLAT stay, the Tribunal applied Section 12A to

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## Parties

- **Judges:** TELAPROLU…; BINOD KUMAR…
- **Appellants:** M/s. Kaliber…
- **Respondents:** M/s. Kelvin…

## Timeline

- **2022-09-19 — CIRP Admi…**: CIRP was admitted by…
- **2022-09-30 — NCLAT Stay…**: NCLAT stayed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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